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Shop Canada's Best Low Interest Credit Cards

Low-Interest Credit Cards

With many credit cards boasting yearly interest rates of 19.99% or more on purchases and balance transfers, you might be a bit hesitant to get one. You're already spending enough using your card and not getting any benefits to offset that spending. Low-interest credit cards afford you some spending relief as you try not to rack up too much debt with every swipe. Though they may not provide you with the benefits that a rewards credit card will, low-interest credit cards can promote disciplined spending if used right.  

What Are Low-Interest Credit Cards and Their Benefits?

These cards are exactly what they sound like. The usual interest rates you pay on a regular credit card are reduced, so you don't feel like you’re spending more than you should be. Contrary to paying 19.99% or more for purchases and balance transfers, you pay anywhere from 5–15% on a low-interest card.  Reduced interest charges are always a welcoming sight. If balance transfers and cash advances are things that you'll use now and then and need to reduce the hits you might take with both, these cards help. They also come with a low annual fee or none at all, so you won’t have to worry about taking multiple hits to your wallet in the process. Using it to finance a purchase is more viable compared to taking out a personal loan.

The most significant benefit this card offers you is it saves you from high credit card debt. That doesn't sound as fun as getting points, AIR MILES, or cashback like on a rewards card, but it's still something worthwhile to have. Some low-interest credit cards offer intro APR on purchases. They are risk-based annual percentage rate incentives, but the credit card issuer will use that as a sign-up incentive to give you assurances regarding its value. Many welcome offers that accompany these cards include a 0% interest rate for the first few months. Because these cards carry a low annual fee or none at all, you can access them no matter how much income you make.

You can also improve your credit score. Paying off your credit card and bills on a consistent and time-efficient basis does that. There are lower minimums for monthly payments, and you want to make sure you don't miss these payments as low-interest cards will drastically increase their rates if you do. That alone is a motivator to stay disciplined when it comes to paying your debts on time. These cards may not make you extra money, but in the long-term, they can save you more money on the things you value.  

Who Should Get a Low-Interest Credit Card?

If you consistently struggle to pay off the full balance on your credit card, low-interest credit cards save you from the added fees that unnecessary interest charges will bring. Considering how quickly credit card interest compounds, it will take you an extended period to pay off your debt.

Not only does a credit card issuer accept people from a variety of income brackets when giving out these cards, but they also give leeway based on your creditworthiness. If your credit score isn't in the best shape, you still can qualify for a low-interest card, which offers you a competitive balance transfer rate. Compare that to balance transfer credit cards, which waive the interest rate on balance transfers. However, you require an excellent credit score to be eligible for such a card. These cards can be motivators for paying bills on time among other things. You get this card only if you know how to budget and aim to build an improved credit line so that you can buy the things you and your family cherish.

For emergency expenses and everyday purchases, these cards are worth the investment. You will have the security of using the card whenever you want. You can also get one depending on how much debt you need to clear. There are platinum cards tailored for long-term debt, Visa cards with added value, variable rate cards, and more. As with any credit card, terms and conditions will apply, so get very acquainted with them before deciding if you should get one or not.

How Do You Decide What Type of Low-Interest Credit Card to Get?

Due to the annual fees and the different low-interest credit card types available, choosing one isn’t as straightforward as you might believe.

You can, however, choose an excellent low-interest card by comparing the interest rates of different cards. Then, figure out how long the low-interest or APR period is for each card you are considering. You'll want to avoid any card that comes with any special conditions before your balances are eligible for the low-interest rate. These conditions include a minimum monthly spend, which means you're having to use your card a lot without really saving the money you're envisioning. If you are a budget-minded consumer, apply for this card by all means as you can spend within your personal limits and take advantage of the reduced interest charges.

There are low-interest cards that offer AIR MILES as American Express does. However, rushing to get such a card might be against your better judgement if you can't afford to stretch your budget. Keep in mind that the low-interest rate may not be linked at all to the different types of transactions you can make with the card. If you’re doing some low-interest card shopping on any financial website, check the advertiser disclosure before jumping in. Also, because the card provides generous interest rates, you may think there’s no urgency to pay off your balance right away. Low-interest cards can become serious financial liabilities if you take them for granted.

With times becoming more fast-paced than ever and your workdays becoming more demanding, low-interest cards are worth taking on if you’re responsible enough. You can pay off your principal and become a great student of the financial game.


Compare the best low-interest credit cards in Canada on and choose the right one for you!